County Weighs Plan To Reserve Contracts For Minority Firms

A proposal that would reserve certain county contracts exclusively for blacks, Hispanics and other minorities has drawn praise from minority-owned businesses in Broward County.

But the proposal, made by Norm Taylor, who heads the county`s Office of Contract Compliance, has caused debate among county purchasing officials. The officials are concerned that the proposal could cause price-fixing as well as eliminate other qualified firms owned by white males.

The proposal calls for the county to vote within a few weeks on the first phase, granting three contruction projects totaling $272,000 to minority-owned firms. A second phase of the proposal would have the county routinely set aside contracts exclusively for firms owned by blacks, Hispanics and other minority groups, but not women. County commissioners may decide on that part of the proposal in May.

``The way the proposal is structured now, it would not guarantee everyone a chance at bidding,`` said Glenn Cummings, director of the county`s purchasing department. ``If there`s a massive set aside, you don`t have a competitive situation.``

However, Taylor said the so-called ``set asides`` are needed to ensure that firms that are at least 51 percent minority-owned receive their county- mandated share -- 15 percent -- of county contracts.

``I think that the set asides are a good thing, especially if you`re looking at small- and medium-sized projects,`` said Fitz Harris, the black owner of a Fort Lauderdale consulting firm called CBHS. ``I have found that set aside contracts in other counties didn`t really help the bulk of minority businesses because they were more than $1 million. Small, young businesses aren`t capable of doing that kind of work.``

In the past, government contracts traditionally have been awarded to businesses owned by white men, many of whom have turned over 51 percent of their business to a woman in order to be eligible for certain contracts, Taylor said. He said his proposal for set asides isn`t aimed at women, unless they are black, Hispanic or another racial minority.

Taylor, who agreed with Harris, said his primary objective is to get more non-construction contracts for minority firms. Taylor`s office was established two years ago under the county`s Small Disadvantaged Business Enterprise ordinance.

``We have been very effective in setting and using goals to increase minority business participation in construction,`` Taylor said. ``However, we have not been using other methods to achieve our goals in other areas outside of construction.``

Last year, of the $95.1 million in county contracts awarded, firms owned by minorities and women accounted for $9.2 million, or less than 10 percent. The goal is 15 percent.

When broken down into construction and non-construction contracts, minority firms received 16 percent of construction contracts in 1985. However, minority-owned firms received only $555,827 -- 1.3 percent -- of $41 million spent on non-construction contracts, such as janitors, architectural engineers and office supplies.

Three projects the County Commission will initially consider for set asides are for the construction of two community centers and a shelter at three county parks, he said.

Approval of the three contracts would make it the second time in two years the county has set aside contracts exclusively for minorities in order to meet its affirmative-action goals. The last set aside was for a rental car business at the Fort Lauderdale/Hollywood International Airport, Taylor said.